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Sustainability Plan 2016-2020

The snapshot provided by the materiality analysis for 2015, as described in the previous chapter, was the base for developing and defining the Sustainability priorities for the Group in the short and medium term. The guidelines of the Sustainability Plan focus on the issues which emerged as the most significant from the materiality analysis, taking account also of Enel’s Strategic Plan and the study of the Sustainability context, which includes the main trends for coming years (population growth, climate change, technological and digital revolution, decentralized management of energy), as well as analysis of the key standards and the main requests from socially responsible investors, as set out below.

The guidelines are then developed by identifying, for each commitment, the specific objectives which Enel takes on for the next 5 years. Therefore, the new Sustainability Plan 2016-2020 updates the previous one and is increasingly focused on the priority issues which have emerged, with a view to increasing integration with the business and with the Group’s strategy.

Business and governanceissues

Objective1

SDG

Solid governance

Constant alignment with international recommendations and best practice.

Continuous improvement in the anti-corruption “Compliance Program”.

Definition of multi-country work groups on human rights and updating of roadmap.

Further extension of training on Code of Ethics, 231 Compliance Program, Zero Tolerance of Corruption Plan and Human Rights.

Creation of economic and financial value

Operational efficiency: optimization of the allocation of capital and reduction in cash cost.

New dividend policy.

Innovation and operational efficiency

Technological evolution in mature markets and in renewable energy.

Acquisition of new customers: +4.7 million new electricity and gas customers in the period 2015-2019.

+30 million smart meters installed or reinstalled in the period 2015-2019.

Support high-potential start-ups in order to create incentives for entrepreneurship and create sustainable value.

Create business accelerators that can intercept and generate new technological and business trends in the areas with the highest rate of innovation.

Promote sustainable electric transport through the development and implementation of innovative business models.

Customer relationship management

New energy efficiency solutions and dissemination of new products and services.

Commercial offers increasingly aligned to the needs and choices of customers and integrated services.

Initiatives to promote responsible consumption and focus on the vulnerable customer groups.

Decarbonization of the energy mix

Development of renewables: +9.2 GW in the period 2015-2019.

Energy mix: 52% renewable installed capacity.

Reduction in specific CO2 emissions (< 350 gCO2/kWheq by 2020).

Environmental issues

Objective1

SDG

Environmentalaspects

Revision of the main environmental targets:

Reduction in specific SO2 emissions by 30% compared to 2010 – by 2020

Reduction in specific NOx emissions by 30% compared to 2010 – by 2020

Reduction in particulates by 70% compared to 2010 – by 2020

Reduction in specific water consumption by 30% compared to 2010 – by 2020

Reduction in waste produced by 20% compared to 2015 – by 2020

Implementation of biodiversity plan.

Continued protection of species on the Red List of the International Union for Conservation of Nature and Natural Resources (IUCN) in protected areas near power plants

Social issues

Objective1

SDG

Management, development and motivation of people

Performance assessment extended to all employees who have worked at the company for at least 3 months. For 2016: 100% of employees who are reachable and admissible will be involved and 80% will be assessed.

International mobility program for youngest employees.

Initiatives to measure the corporate climate. For 2016: 100% of employees who are reachable and admissible will be involved and 78% will take part.

Development of innovative multimedia instruments for training and ad hoc courses, to guarantee equal access for employees.

Program of study grants for employees.

Review of salaries to guarantee alignment with market benchmarks, reduce the gender pay gap and provide incentives for the most talented staff.

Global implementation of the Diversity and Inclusion Policy and development of dedicated local initiatives: balanced presence of men and women in selection and recruitment processes; tutoring service for expats, new recruits and “new mothers”, country focal point on disability.

Extension to Spain of the “Parental program” available in Italy.

Promotion of work-life balance initiatives and development of the smart working program. For 2016: pilot project on smart working in Italy.

Responsible relationships with communities in operations and Support and development of local communities

Access to electricity: 3 million beneficiaries in the period 2015-2020, mainly in Africa, Asia and Latin America.

Social and economic development: 500 thousand beneficiaries in the period 2015-2020.

Education: 400 thousand beneficiaries in the period 2015-2020.

Implementation of new projects to benefit the communities where Enel operates in order to create shared value and disseminate the culture of energy.